Rupees all time low: Rupee at all time low against Dollar; Why did the Indian currency fall drastically? , Zee Business

Rupees all time low: Rupee made a new record low level today (22 September 2022) with a huge fall against the dollar. In the opening trade itself, the rupee fell by 51 paise to an all-time low of 80.47. The dollar index saw a strong showing after the US Fed raised interest rates for the third time in a row to control inflation. Its pressure fell on the Indian rupee, due to which there was a big fall in the domestic currency. In Thursday’s session, trading in the rupee started at 80.27 and went to a record low of Rs 80.47 per dollar in the initial deals itself.

Earlier, on Wednesday, September 21, the Indian rupee had closed at 79.96 against the US dollar. The rupee opened at 79.79 against the dollar on Wednesday and saw a steady decline during the day’s trading. The rupee slipped against the dollar for the first time on July 20 and closed above 80 at 80.05.

Dollar index above 111

Anuj Gupta, Vice President, IIFL Securities, says that after the Fed’s decision on interest rates, the dollar index is trading above the level of 111. Due to the strengthening of the dollar index, weakness was seen in the Indian rupee and other Asian currencies and they are trading at lower levels. The euro is also trading at a 20-year low of 0.9822 against the dollar and the pound at a 29-year low of 1.1234 against the dollar.

How far can the rupee go?

Anuj Gupta says that after the strong statement of the Federal Reserve, all major currencies may see a decline against the dollar. There will be a fall in the rupee. Indian Rupee may soon show the level of 81 to 82.

Will RBI intervene?

Santosh Meena, Head of Research, Swastika Investmart Limited, says, “It is clear from the recent actions and comments of the US Federal Reserve that the interest rate hike will still continue. We believe that despite the improvement in the domestic economic conditions, the pressure on the rupee may remain. Moreover, it will be difficult for RBI to intervene and take drastic action to arrest the rupee depreciation as the liquidity in the banking system has come into deficit after being in surplus mode for nearly 40 months. In the current situation, the Reserve Bank does not want to derail the economic recovery.

Meena says, technically a breakout was seen after the rising trend formation in dollar-rupee. Due to which the rupee may further weaken towards the 81.5-82 zone. However, the level of 81 will be an intermediate and important support level for the rupee.

Fed raised interest for the third time in a row

In its efforts to control inflation, the US Central Bank US Federal Reserve on Wednesday raised interest rates for the third time in a row. Federal Reserve Chairman Jerome Powell raised interest rates by 0.75%. Interest rates increased to 3-3.2 percent. At the same time, the US Fed has indicated that it may increase interest rates in the coming meeting as well.

Earlier on July 27, interest rates were increased. The US Fed is worried about inflation. The US Fed is committed to bringing inflation down to 2%. The central bank estimates that it can take interest rates to 4.6 percent by the year 2023. The benchmark rate can be increased to 4.4 percent by the end of the year. After this, it is estimated to increase to 4.6 percent in the year 2023.

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